House of Fraser Says Dispute Won’t Derail Sanpower Deal

April 7 (Bloomberg) -- House of Fraser said a dispute over
a share sale won’t derail the U.K. department-store chain’s
plans to sell the business to China’s Sanpower Group.

Sports Direct International Plc Chairman Mike Ashley bought
an 11 percent stake in House of Fraser from Scottish
entrepreneur Tom Hunter about a week ago and tried to buy other
stakes yet failed, the Sunday Times reported yesterday.

“This situation has no impact on our plans to sell to
Sanpower Group and we will be making an announcement in due
course,” House of Fraser said in a statement today. “We have
sent legal letters to both parties, reminding them of the proper
procedures to transfer shares, which have not been followed.”

House of Fraser, which has about 60 stores in the U.K. and
Ireland, was planning to sell shares in an initial public
offering this year after talks with France’s Galeries Lafayette
broke down in January, two people familiar with the matter said
at the time. The deal with Sanpower, which values the retailer
at 450 million pounds ($746 million) may help the House of
Fraser brand to expand in China and help the retailer resonate
with Chinese shoppers traveling to the U.K., the Financial Times
reported April 5.

A spokesman for Hunter said his lawyers have responded and
that he’s comfortable with his position, while a spokeswoman for
Ashley declined to comment.